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F IS C A L A G E N T O F T H E U NITED S T A T E S

DALLAS, TEXAS 7 5 2 2 2
C ircu la r N o. 74-114
A p ril 30, 1974

NEW OFFERING — TREASURY BILLS
To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your atten tio n is invited to the following s ta te m e n t giving details of tw o issues of Treasury bills:
T h e T re a su ry D e p a rtm e n t, b y th is p u b lic notice, in v ite s ten d e rs fo r two series of T re a su ry b ills to th e a gg reg ate a m o u n t
of $4,300,000,000, or th ere ab o u ts, to be issued M a y 9, 1974, as follow s:
9 1-D A Y B IL L S (to m a tu rity d a te ) in th e a m o u n t of $2,500,000,000, or th ere ab o u ts, re p re se n tin g a n a d d itio n al
a m o u n t of b ills d a te d F e b ru a ry 7, 1974, a n d to m a tu re A u g u st 8, 1974 ( C U S I P No. 912793 U J 3 ) , orig inally
issued in th e a m o u n t of $1,802,470,000, th e a d d itio n a l a n d o riginal bills to b e fre ely interch an g eab le.
182-D A Y B IL L S for $1,800,000,000, o r th ere ab o u ts, to b e d a te d M a y 9, 1974, a n d to m a tu re N o v e m b er 7, 1974
( C U S I P No. 912793 U X 2 ) .
T h e bills will be issued fo r cash a n d in exchange fo r T re a su ry b ills m a tu rin g M a y 9, 1974, o u tstan d in g in th e a m o u n t of
$4,305,565,000, of w hich G o v e rn m e n t acco u nts a n d F e d e ra l R e se rv e B anks, for th em selv es a n d as a g en ts of fo reign a n d in te r­
n a tio n a l m o n e ta ry a u th o ritie s, p re se n tly hold $2,319,945,000. T h e se accou n ts m a y exchange b ills th e y ho ld for th e b ills now
b ein g offered a t th e a v erag e p rices of a cc ep te d tenders.
T h e b ills of b o th series w ill b e issued on a d isco un t basis u n d e r c o m p e titiv e a n d n o n c o m p e titiv e b id d in g as h e re in a fte r
p ro v id ed, a n d a t m a tu rity th e ir face a m o u n t w ill b e p a y a b le w ith o u t interest. T h e y will b e issued in b e a re r fo rm only, a n d in
d en o m in atio n s of $10,000, $15,000, $50,000, $100,000, $500,000 a n d $1,000,000 ( m a tu r ity v a lu e ).
T e n d e rs will b e re ce iv e d a t F e d e ra l R e se rv e B a n k s a n d B ran ch es u p to th e closing hour, o n e -th irty p.m ., E a s te rn
D a y lig h t S av ing T im e , M o n d a y , M a y 6, 1974. T e n d e rs w ill n o t be receiv ed a t th e T re a su ry D e p a rtm e n t, W ashington. E a c h
te n d e r m u st b e for a m in im u m of $10,000. T e n d e rs o v er $10,000 m u st be in m u ltip le s of $5,000. I n th e case of c o m p e titiv e
te n d e rs th e price offered m u st b e expressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ra c tio n s m ay
n o t be used. I t is urg ed t h a t te n d e rs be m a d e on th e p rin te d form s a n d fo rw arded in th e special en velo p es w hich w ill be su p p lied
b y F e d e ra l R e se rv e B a n k s or B ra n ch e s o n a p p lic a tio n th erefo r.
B a n k in g in stitu tio n s g en erally m a y su b m it te n d e rs fo r a cc o u n t of c u stom ers p ro v id e d th e n am es of th e c u sto m ers a re
se t fo rth in such ten d ers. O th e rs th a n b a n k in g in stitu tio n s will n o t be p e rm itte d to su b m it te n d e rs e x ce p t for th e ir ow n account.
T e n d e rs will b e receiv ed w ith o u t d e p o sit fro m in co rp o ra ted b an k s an d tr u s t c o m p an ies a n d fro m resp o nsib le a n d recognized
d e ale rs in in v e s tm e n t securities. T e n d e rs fro m o th ers m u s t be acco m p an ied b y p a y m e n t of 2 p e rc e n t of th e face a m o u n t of
T re a su ry bills a p p lie d for, u n less th e te n d e rs a re a cc o m p an ied b y a n express g u a ra n ty of p a y m e n t b y a n in co rp o ra ted b a n k or
tr u s t co m pany.
I m m e d ia te ly a f te r th e closing h our, te n d e rs w ill b e o p e n ed a t th e F e d e ra l R e se rv e B a n k s a n d B ranches, follow ing
w hich p u b lic a n n o u n ce m en t will be m ad e b y th e T re a s u r y D e p a rtm e n t of th e a m o u n t a n d p rice ran ge of a cc ep te d bids. O nly
th o se su b m ittin g c o m p e titiv e te n d e rs will b e ad vised of th e a ccep tan ce or re je ctio n thereo f. T h e S e c retary of th e T re a su ry
expressly reserv es th e rig h t to a c c e p t o r re je c t a n y or a ll ten ders, in whole or in p a rt, a n d h is a ctio n in a n y such re sp e c t shall b e
final. S u b je c t to th ese reservatio ns, n o n c o m p e titiv e te n d e rs fo r each issue for $200,000 o r less w ith o u t sta te d p rice fro m a n y
one b id d e r w ill b e a cc ep te d in full a t th e av erag e p rice ( in th re e d ecim als) of a cc ep te d c o m p e titiv e bids for th e resp ectiv e
issues. S e ttle m e n t for a cc ep te d te n d e rs in accordance w ith th e b id s m u st b e m ad e o r c o m p le te d a t th e F e d e ra l R e se rv e B a n k
on M a y 9, 1974, in cash or o th e r im m e d ia tely a v ailab le fu n d s or in a like face a m o u n t of T re a su ry bills m a tu rin g M a y 9, 1974.
C ash a n d exchange te n d e rs w ill receiv e eq u al tre a tm e n t. C ash a d ju s tm e n ts w ill be m ad e fo r differences b e tw ee n th e p a r v alu e
of m a tu rin g b ills a cc ep te d in exchange a n d th e issue p ric e of th e new bills
U n d e r S ections 4 54 ( b ) a n d 1221 ( 5 ) of th e In te rn a l R e v en u e C ode of 1954 th e a m o u n t of d iscou n t a t w hich b ills
issued h e re u n d e r a re sold is co n sidered to accru e w h en th e bills a re sold, re d ee m e d o r o therw ise d isposed of, a n d th e bills a re
e x cluded fro m c o n sid era tio n as c a p ita l assets. A ccordingly, th e o w ner of T re a s u ry bills ( o th e r th a n life in su ran ce co m p an ies)
issued h e re u n d e r m u st inclu d e in his incom e ta x re tu rn , as o rd in a ry g ain o r loss, th e difference b e tw ee n th e p rice p a id for th e
bills, w h e th e r o n original issue or on su b seq u e n t p u rch ase, a n d th e a m o u n t a c tu a lly receiv ed e ith e r u p o n sale o r re d e m p tio n a t
m a tu r ity d u rin g th e tax a b le y e a r for w hich th e r e tu rn is m ade.
T re a s u ry D e p a rtm e n t C ircu la r No. 418 (c u rre n t re v isio n ) a n d th is notice, p re sc rib e th e te rm s o f th e T re a su ry bills a n d
govern th e c o nd ition s of th e ir issue. C opies of th e c irc u la r m a y be o b ta in e d fro m a n y F e d e ra l R e se rv e B a n k o r B ranch.

In acc orda n c e with the a b o v e a n n o u n c e m e n t, te n de rs will b e received a t this b a n k a n d its b ra n c h e s a t El Paso,
Houston a n d San Antonio up to tw elve-thirty p.m., Central Daylight Saving Time, M o n d a y , M a y 6, 1974. Tenders
m a y not b e e n te re d by te le p h o n e .
Yours very truly,
P. E. Coldwell
President
LAST PREVIOUS OFFERING OF TREASURY BILLS
A m ou n t, R a n g e a n d A p p ro x im ate Y ie ld of A ccep ted T e n d e rs
13-W eek B ills
26-W eek B ills
D u e A u gu st 1, 1974
D u e O cto b er 31, 1974
$4,091,080,000-------------------------------------------------- T o ta l A p p lied F o r _________________________________ $2,463,990,000
$2,501,430,000---------------------------------------------------- .T o tal A c c ep ted __________________________________ $ 1,801,435,000
P ric e
Y ie ld
P ric e
Y ield
97.796------------------- 8 .7 1 9 % ----------------------------------------- H ig h _________ _____________95.633___ _ ______8 .6 3 8%
_
_
9 7.712-------------------9 .0 5 1 % ___________________________ L ow ________________________ 95.475____________ 8.951%
97.748------------------- 8 .9 0 9% ( 1 ) -------------------------------- .A v erag e______________________ 95.553____________ 8 .79 6 % ( 1 )
(1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 9.24% for the 13-week bills and 9.33% for
the 26-week bills.

(See reverse for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

TENDER FOR TREASURY BILLS

182 DAYS TO MATURITY
Dated May 9,1974

Maturing November 7,1974

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_________________________ Branch
El Paso 79999

Houston 77001

San Antonio 78295

(Date)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and a t the rate indicated.

NONCOMPETITIVE TENDER $____________________________________

JNTO TO EXCEED $200,000
T

Noncompetitive tenders for $200,000 or less from any bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
/«

!
COMPETITIVE TENDERS <$!
!
!

^

e

@

$
$
$
-$

fa)
(n)
(a)

Prices should be
expressed on the
basis of 100, with
not more t han three
decimal places, e.g.,
99.925. F ra c tio n s
m ust not be used.

TENDERS MAY NOT BE ACCEPTED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE
CLOSING HOUR ARE ACCEPTABLE.
Denominations Desired
Number of
pieces

Payment for this issue of bills cannot be made by
credit to Treasury Tax and Loan Account
METHOD OF PAYMENT

M aturity Value

10,000 $
15,000 $

□

(2) $ 50,000 ?
(5) $ 100,000 $
& $ 500,000 $
(5) $1 ,000,000 $

□

<> $
S
(5) $

By maturing bills
held by____________________________
Payment to be made by_____________

Charge
□ date our reserve account on payment
□ Draft enclosed
(Effectual delivery of enclosed d raft
shall be on latest day which will perm it presentm ent
in order to obtain irrevocably collected funds on pay­
m ent date)

Delivery Instructions:
□

Hold in Custody — General Account

□ Hold in Custodycount

(Subscriber’s full name o r corporate title)

Investment Ac-

□
□

Hold in Custody — Trust Account
Pledge to secure Treasury Tax and
Loan Account

□

( Address)

Other___________________________

By.

(Authorized official signature and title)
(F o r the account of, if tender is fo r another subscriber)

(Address)

IMPORTANT
1. No tender for less than $10,000 will be considered and each tender over $10,000 m ust be for an amount in multiples of
$5,000 (m aturity value).
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY OFFERING”. Since envelopes
received with this legend will not be opened until after the closing time specified in the public announcement, communi­
cations relating to other m atters should not be enclosed. Envelopes for submitting tenders may be obtained from this
bank or appropriate branch.
3. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he
has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form “ __________________________ , a copartnership, by__________________________________
,
a member of the firm.”
5. Tenders from those other than incorporated banks and tru st companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.
(See reverse for announcement)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102